Geo-Political Tensions Spike Oil Prices Amidst Middle East Conflict
Oil prices fluctuated after reaching a five-month high due to heightened tensions following U.S. airstrikes on Iran. Supply fears, particularly around the Strait of Hormuz, have led to volatility with the geopolitical risk premium being assessed amidst ongoing violence. Analysts remain cautious about the evolving situation's impact on crude supply.
Oil prices experienced significant fluctuations on Monday, initially reaching a five-month high. These changes come as oil and gas transit continued via tankers from the Middle East following U.S. airstrikes against Iran over the weekend.
U.S. President Donald Trump claimed to have 'obliterated' Iran's main nuclear sites in a move that joined Israeli attacks and heightened tensions in the region. Despite the escalation, Iran, the third-largest OPEC crude producer, vowed to defend itself against international assaults.
The potential closure of the Strait of Hormuz by Iran, through which a fifth of global oil supply flows, remains a critical concern. Analysts suggest prices may spike due to the uncertainty, even without a full-scale disruption. Investors are keenly watching the situation, with oil majors like BP and TotalEnergies evacuating some staff from Iraqi oilfields.
(With inputs from agencies.)
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